The Future with Information Technology’s Innovations in Banking

This article examines the transformative impact of information technology (IT) on individual banks and the banking sector as a whole. From one site, the basic economic principles remain unchanged, but the saving that banks are seeking come precisely from information technology. From other site, they must adapt their relationship with customers to align with consumer preferences regarding information technology and use IT innovations to redesign or even rethink their operations. The landscape of the financial industry is also changing due to the increasing entry of startups from the financial technology (FinTech) sector and IT companies into traditional banking. The Government interventions and regulation offer banks a valuable opportunity to respond to these emerging challenges. The main objective of this study is the identification of the positive and negative aspects of using information technology in the banking sector, thereby prompting a shift in future strategic directions for development and management in this economic sector. Our main hypothesis is: The use of digital technologies in the banking sector has a positive and statistically significant impact on banks’ financial results. The changes in information technology will alter the structure of banks, as the influence of bank management in decision-making will be balanced by that of customers; bank costs will decrease, and banking services will be offered more quickly and will be more acceptable to customers.